Funds Illegally transferred by MTN may be more than $13.9bn- Senate

As the Senate probe into $13.9 billion allegedly transferred from the country by the nation’s leading telecommunications company, MTN, begins, there were indications on Thursday that   the amount involved may be far more that what was envisaged.

A lawmaker said the amount involved is “mind boggling” and that it may be much more than the figure given. He stated this on Thursday at the start of a parliamentary investigation into the issue. He did not specify what the alleged amount might now be.

“It is not what we can sweep under the carpet. We intend to get to the bottom of the fact, all of the fact, nothing but the fact,” said Olusola Adeyeye, a senator, reading out a statement from Senate leader Bukola Saraki, said at the start of hearing.

Nigeria’s upper chamber agreed last month to investigate whether the company unlawfully repatriated $13.92 billion between 2006 and 2016.

The accusations of illegal money transfers were denied by MTN Nigeria Chief Executive Ferdi Moolman, who appeared at the hearing.

“MTN categorically denies all suggestions that its bankers in strict violation of the FEMM Act (Foreign Exchange (Monitoring and Miscellaneous Act) and Foreign Exchange Manual, repatriated $13.92 billion illegally out of Nigeria,” said Moolman.

The allegation is the latest setback for Africa’s biggest telecoms firm in its most lucrative market, coming months after it agreed to pay a greatly reduced fine of 330 billion naira ($1.08 billion) to end a long running dispute over unregistered SIM cards.

Dino Melaye, the senator who first made the allegations in a motion passed by lawmakers last month, said he raised the issue “as a patriotic Nigerian, a whistleblower and an anti-corruption crusader”, adding that he stood by the allegations.

Senate Committee on Banking, Insurance and other Financial Institutions has scheduled Thursday October 20 for an open probe of MTN, Minister of Trade and Investment, Dr. Okechukwu Enelamah and some banks, over an alleged illegal repatriation of $13.92 billion out of the country between 2006 and 2016.

The Senate had on September 27, 2016 alleged that Enelamah connived with MTN to exploit the Nigerian financial system to move the money out of the country without authorisation.

It was further alleged that MTN smartly beat Nigeria’s financial regulatory laws by failing to obtain a certificate of capital importation, which would have authorised it to move capital into Nigeria from its South African bankers, Standard Bank, as authorised by the law within 24 hours.

It was equally alleged that the repatriation was done through Standard Chartered Bank, Stanbic IBTC, Diamond Bank and Citi Bank.

To get to the root of the matter, the Senate mandated its Committee on Banking, Insurance and Other Financial Institutions to probe the minister, MTN, the banks and other Nigerians alleged to have been involved in the deal.

Against this background, the committee has summoned MTN, Enelamah, Col. Sani Bello, Chairman of Diamond Bank, Dr. Pascal Dozie and Ahmed Dasuki. Also expected at the investigative hearing are Gbenga Oyebode, Babatunde Folawiyo and Victor Odili.

It was reported on Thursday that report in already affecting MTN shares where is it listed in South Africa as it was said to have recorded a depreciation of  3.2 per cent to more than six-year lows after Bloomberg quoted a senator as saying the amount could be “outrageously higher”.